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New Official Calculations Make Brazil World’s Tenth Largest Economy

Brazilian train in São Paulo state interior

Brazilian train in São Paulo state interior Brazil ranks as the world's tenth economy, ahead of South Korea, Holland and Australia, according to a GDP new calculation system announced by the government and which a majority of Brazilians economists consider more in line with reality.

With the modified system, the Brazilian economy growth rate in past four years has experienced an encouraging extra increase. In 2002 real increase was 2.7% (1.9%); in 2003, 1.1% (0.5%); in 2004 5.7% (4.9%) and in 2005, 2.9% (2.3%).

Brazil's GDP in 2005 reached US$ 882.130 billion (at the exchange rate to the time) which means the country climbed from position 11 to 10 in the world's country economy ranking, according to Austin Rating consultants.

This in practical terms means that in 2005 the Brazilian economy, placed in position 11, was larger than South Korea's position 10, ahead of Holland and Australia even in 2003 and 2004.

However the methodological reform has had to live with a certain degree of suspicion since growth rates from 2003 to 2005, the first three years of the Lula da Silva administration, were considerably significant and not so much those between 2000 and 2002, the last three years of former president Fernando Henrique Cardoso (1995/2002).

According to the reformed calculation system, in 2000 the Brazilian economy expanded 4.3% just below the original 4.4%, while in 2001 the previous and reformed systems coincided in 1.3%.

"The good news is that GDP was growing above original estimates and now we have a more precise calculation," said Finance Minister Guido Mantega.

Mantega believes that with the new criteria, growth of the Brazilian economy in 2006 could be in the range of 3.3 to 3.6%, well above the 2.9% officially released last week based on the former criteria.

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  • Show Comments (19)

  • Ingo

    Brazil
    At the moment Brazil has potential…it is not yet a big world power.
    it is part of the BRIC countries(Brazil,Russia,India,China)which means it is seen as a growing power but not one already stablished and a force to be recond with.I do think that in the future it will overtake countries like France,Japan etc mostly because of its shear size but it will take good leadership and well made desitions to ge there.Under lula(the current brazilian president) steps are being made to speed up the economy….will we see the product of these efforts in the next 2 to 4 years probably not but once the changes that are being made in Brazil kick in i expect a 5 to 8 percent growth rate….and i also predict that in 20 years Brazil will be up there with the top 5 economys of the world.

  • brazilian with an american wife

    Who’s talking about happiness!!
    A poor individual could be happier than a rich individual, or vice and versa!! The best place to live is where you are happy, economy does not matter!! You could live in an Island(Puerto Rico) and could be the happiest person in the earth. You guys sound really angry :sad:!! Just go ahead and try to find a life and stop arguing about what each one of you are not helping to improve at all. blablabla!! do something to contribute with it, are you? Remember your smart people “it is not what your Country does for you, it is what you do for your Country”. are you? RELAX “SMART” PEOPLE!! Anger won’t take you in anywhere!

  • ny

    To brazilian-amrican born-
    I second that, maybe they need some fog &rain just like in london, so that their big brzilian amll minds can cool off & maybe then they’lll start thinking clealy.

  • ny

    brzilianphonia
    To proud brzilian:
    In typical brazikian fashion your living in a delusional state of mind, it is so sad to see how your low self esteem/insecurity that most of your country suffers from really is true; you people just don’t get it that no one likes you even with all your lies, deceptions, etc.
    As far as America having the largest incarcerated popultion in the world, do you know why, because we have enough jails, and we prosecute. If your jungle country could afford to build jails i wouldn’t be surprised if at least 50% of the population including the politicians would be in jail. Instead they just let things run about rampant just like the jungle that the country is & it’s jungle mentality.
    Brazil is the country of the future that never seems to arrive, that’s because of your country ineptness; it will not happen, so keep dreaming, you’ve had 120 yrs to do so, but of course there is always the excuse of the colonizer, what they did, etc. After all slvery hasn’t ended in brazil, it is still practice indifferent fashions on an everyday basis, but of course no one talks about that.

  • A proud Brazilian… ever!!!

    Where are you stupid?
    [quote]What have you been smoking?? New York City is now the safest megalopolis in the WORLD!! Brazils poverty is well known, especially to those of us that live here! The third lowest minimum wage on planet earth and severe problems in education. More than 40 million brazilians making less than 2 dollars a day!!! And as far as crime, 55,000 people murdered in brazil in 2005, 14,000 in the U.S., and the U.S. has nearly twice the population, you want to talk about crime?? You tell me, why do you think that brazilians by the millions are leaving this “best place in the world to live”??? Wow, at least you correctly named yourself, “A proud brazilian”, lol. I’ve met many of you guys, you’d deny the fact that the sun rises every morning if it was something to not be proud of.
    [/quote]

  • A Brazilian-born American

    Keep it up, Bo!!
    I think Bo and ch.c must have a ball writing about and living Brazil.

    What you do in this site is a great favor to Brazil and Brazilians, for free, no less.

    It is a pity that people like Proud Brazilian fail to recognize where Brazil’s problems are,
    instead, he prefers to boast how great his country is.

    Kudos to Bo and ch.c. Brazilians… hello?>?? wake up! your country is spiraling down the
    toilet and you’re talking about the greatness of being the 10th world economy.

    Best place to live int he world?! tell this to your countrymen who are fleeing
    your tropical paradise in droves.

  • A proud Brazilian… ever!!!

    To Bo,
    Bo in his answer has written: “…and the U.S. has nearly twice the population”…
    My God! Not even basic maths skill!!!
    United States population: 298,444,215
    Brazil’s population: 188,078,227
    The difference between USA x Brazil population: 110,365,988 or the Brazilian population is equal to 63% of the American population.
    USA has 110,365,988 more inhabitants than Brazil: it means 58.7 % more inhabitants than the Brazilian population. That’s not almost twice!!!
    To be “nearly” twice as you said, you would need to tell us that the American population was 376,156,454 what is basically the double of 188,078,227 that is the actual Brazilian population. Anyway, if you take the actual American population totalizing 298,444,215 from what you call to be the “nearly twice” 376,156,454 (let’s than take 0.5% to make sense for the expression “nearly”) it would be: 374,275,672… than your “nearly” is 75,831,457 people more!!!! That’s a huge difference!!!
    That’s bigger than the population of France: 62,752,136; Italy: 58,133,509; UK: 60,609,153; Turkey: 70,413,958; close to the population of the entire Egypt!!!
    That’s the American megalomania: obtuse view of the world! Then you come to tell me about American education?

  • A proud Brazilian… ever!!!

    Facsimile
    “…That would be like an american trying to tell you about how to lie, decieve, cheat, steal and deny.”…
    Oi American: you don’t need to tell: we just watch the news about Iraq everyday… that’s enough. Your movies are the best way to spread those attitudes anyway. What of roten have not you taught the world?
    Are you really sane? Do you really have an idea about your country and culture? Are you stupid, or what? Do you think your people has given any real contribution? When you look at the best Americans they were never Americans, but naturalised Jewish, Germans, English, even Brazilians… Americans? Who?
    Do you know what? The average educated American is a facsimile copy of George Bush. That’s not any exception: that’s the rule!!!

  • bo

    [quote]As I wrote, 0,50 Reais per day is barely enough for a daily ration for a small……CAT ! [/quote]

    [b]ROTFLMAO!!![/b]

    it’s true!

  • bo

    [quote]Education?
    written by A proud Brazilian… ever!!!, 2007-03-25 19:00:36
    [/quote]

    Oh come on now, a brazilian talking to an american about education???

    That would be like an american trying to tell you about how to lie, decieve, cheat, steal and deny.

  • A proud Brazilian… ever!!!

    Yeah, Yeah, Yeah… Americans: bla, bla, bla…
    Brazil shuts down U.S. company’s port on Amazon River, demands environmental assessment
    By ALAN CLENDENNING The Associated Press
    Article Launched: 03/25/2007 08:46:37 AM EDT

    SAO PAULO, Brazil — Authorities shut down an important deep-water Amazon River port owned by Cargill Inc. on Saturday, saying the huge U.S. agribusiness firm failed to provide an environmental impact statement required by law.

    The move by federal police and environmental agents to close Cargill’s controversial soy export terminal was a major victory for environmentalists in Santarem, a sleepy jungle city about 1,250 miles northwest of Sao Paulo. It came after a late Friday ruling by Judge Souza Prudente, police and the Agencia Estado news service said.

    ”It was peaceful,” federal police agent Cesar Dessimoni said of the shutdown. ”They can appeal the ruling, but no one resisted.”

    Dessimoni said Minnetonka, Minn.-based Cargill had prepared an environmental assessment that did not meet federal standards.

    ”They’ll have to do it correctly, as the law demands,” he said by telephone from Santarem.

    Environmentalists who point to soy farming, logging and cattle ranching as the primary threats

    facing the Amazon praised the closure, calling it a milestone in attempts to push the government to more effectively police a region where lawlessness often prevails.

    ”A big step forward has been taken in enforcing the responsible use of natural resources and bringing greater governance in the Amazon,” Paulo Adario, Greenpeace Amazon Campaign Coordinator in Brazil, said in a statement.

    Cargill, which has operated in Brazil since 1965, said Saturday that it plans to appeal the ruling and that it had submitted an environmental impact statement that was accepted by the Amazon state of Para, where Santarem is located.

    ”We find ourselves caught in a jurisdictional dispute between the state and federal government about which regulations have precedence,” Cargill spokeswoman Lori Johnson said. ”When we built the facility, the permits were issued by the state.

    ”Since that time the federal prosecutor has said we should have done another kind of environmental assessment and that is the issue before the courts.”

    No ships were being loaded or waiting to load when the port was closed, Johnson said.

    Cargill opened the $20 million port in Santarem three years ago to cash in on the rising global demand for soybeans, Brazil’s most lucrative agricultural export.

    The port’s location puts it in a key spot if Brazil’s government follows through on promises to pave a muddy jungle road, turning it into a modern two-lane toll highway stretching 1,100 miles from Brazil’s top growing soy state of Mato Grosso to Cargill’s deep-water port.

    Johnson said Cargill has not taken a position on the road paving project and that the port can still be profitable without the road.

    But grain analysts say paving the road would benefit soy exporters and Cargill by drastically cutting the cost of shipping soy abroad because many farmers could avoid sending their beans on trucks to Atlantic Ocean ports much farther away. President Luiz Inacio Lula da Silva pledged the paving would start soon during his successful campaign for re-election last fall.

    Cargill became a target for residents, activists and federal prosecutors who called the port illegal and tried to shut it down. But the port also has strong support from many in Santarem, who see it as a key element for economic development to rid the region of grinding poverty.

    The rain forest, as big as Western Europe, lost 6,450 square miles to deforestation between 2005 and 2006, a decrease of 11 percent from the year before, Brazil’s Environment Ministry says.

    Environmentalists say deforestation has slowed largely because the price of soybeans has declined on the international market and Brazil’s currency has strengthened against the dollar, making it much less profitable for now to cut down the rain forest to plant grain.

    The rain forest covers 60 percent of Brazil. Experts say as much as 20 percent of its 1.6 million square miles has already been destroyed by development, logging and farming.

  • A proud Brazilian… ever!!!

    Education?
    America: the biggest carcerary populations in the world. Education: I don’t know an American properly educated; I know Americans brainwashed… you can’t think outside the aquarium: that’s why your obtuse idea of the world. God will forgive you.

  • ch.c.

    to the proud brazilian…saying…..Brazil will overcome France !!!!
    – Thus why are you much poorer than France…or at least as wealthy ????? Hey hey….and on whatever index you can look !!!!!
    – Confusions and confusions abound, facts being that France has 2 times the GDP of Brazil, YESSSSSSSS 2 times !
    – Number you refer to will be based on a PPP basis not straight basis.

    In my view poorer countries such as Brazil, are the ones who enjoy manipulating stats so that they look less stupid than they effectively are.
    How can anyone suddenly “discover” a new “technique” (trick is more appropriate) to re-adjust past datas…curiously going back only as of when Lula was elected ????

    Are you not like in the fairy tale where the frog wants to become larger than a beef ?????????????
    Trick reserved for Brazilians or could every one do the same ?????? Laugh….laugh…laugh
    Should the GDP not be calculated with the same basis in ALL countries, or could some countries change the maths formulas as it pleases them ????????
    Are you a little bit dumb or totally dumb ?
    Why dont find a formula that will put Brazil with the smallest wealth inequality, with no slaves labor, no children labor, no corruption, lowest crime rates, and best in doing business instead of being ranked 122 out of 175 countries ??????

    I am pretty sure that you are working hard on it, to find out how you could cheat time and time again !!!!!!!!

    Lula is already cheating every one with his : tens of millions Brazilians can now have 3 decent meals per day DUE TO HIS GENEROSITY ……while in reality the Bolsa Familia provides 0,50 reais per day for the 3 (in)decent meals such an amount can effectively provide. As I wrote, 0,50 Reais per day is barely enough for a daily ration for a small……CAT !

  • bo

    [quote]written by A proud Brazilian… ever!!!, 2007-03-24 10:25:17

    I’m a Brazilian with an European passport and I live in London for other purposes other then scape from what you think is poverty in Brazil. Ridiculous! People leave their country for so many reasons and they come back. Brazilians always come back, We have the best place to live in the world. I lived in New York before “… murder, crime, and corruption” is spreaded there in New York and here in London, like grass and flowers. The fifference: the press don’t make a big issue of them as they do if it happens in other countries. Because, at the end of the day, you live in fantastic democratics nations!!![/quote]

    What have you been smoking?? New York City is now the [b]safest[/b] megalopolis in the WORLD!! Brazils poverty is well known, especially to those of us that live here! The third lowest minimum wage on planet earth and severe problems in education. More than 40 million brazilians making less than 2 dollars a day!!! And as far as crime, 55,000 people murdered in brazil in 2005, 14,000 in the U.S., and the U.S. has nearly twice the population, you want to talk about crime?? You tell me, why do you think that brazilians by the millions are leaving this “best place in the world to live”??? Wow, at least you correctly named yourself, “A proud brazilian”, lol. I’ve met many of you guys, you’d deny the fact that the sun rises every morning if it was something to not be proud of.

  • A proud Brazilian… ever!!!

    A simple mind
    I’m a Brazilian with an European passport and I live in London for other purposes other then scape from what you think is poverty in Brazil. Ridiculous! People leave their country for so many reasons and they come back. Brazilians always come back, We have the best place to live in the world. I lived in New York before “… murder, crime, and corruption” is spreaded there in New York and here in London, like grass and flowers. The fifference: the press don’t make a big issue of them as they do if it happens in other countries. Because, at the end of the day, you live in fantastic democratics nations!!!

    “… murder, crime, and corruption”
    have a souce: selfishness and drugs;
    Selfishness and drugs have a source: unfair huge profits which should be shown by any multinational company which is listed in any stockshares market in the world (including and mainly in New York and London); the profits in human fresh made by the trilionaire market of weapons and the profit which comes from Colombia and Afganistan which is used to sustain the organizations those that are necessary to perpetuate this system in world…
    Alcohol and cigarretes are drugs.
    The huge industry of cinema and TV spreads these vicious habits all around the world with this system consentment. Other drugs (cocaine, heroine, etc) are more rare and their profit are directed to those organizations .

    Please stop having a simple mind. Don’t comment because you lack too much knowledge even to start a debate.

  • u.s. guest

    u.s. capitalist
    I,m not convinced !!!…And, incidentally since you claim Brazil is a economic power ( # 10 )…THEN WHY IS IT BRAZIL IS THE # 2 VIOLATER OF OUR IMMIGRATION LAWS ?????…. IS THAT BRAZIL,S EXPORT TO THE U.S….

  • bo

    [quote]written by A proud Brazilian… ever!!!, 2007-03-23 16:33:29

    Brazil’s GDP reached 1.80 trillion U.S. dollars in 2005[/quote]

    [quote]Brazil’s GDP in 2005 reached US$ 882.130 billion (at the exchange rate to the time) which means the country climbed from position 11 to 10 in the world’s country economy ranking, according to Austin Rating consultants.[/quote]

    LOL…bud, you more than doubled the actual GDP of brazil, you must have meant in REAIS and not dollars! And as long as they don’t invest and make education they’re number 1 priority in brazil, you’re going to get a lot more of the same ole same ole. Leading the world in murder, crime, and corruption.

  • A proud Brazilian… ever!!!

    Brazilianphobia
    Brazilianphobia,
    The more a read this website the more I see obsessed people. They suffer with what I could just have coined as À¢€œBrazilianphobiaÀ¢€ÂÀ¢€¦ I have never read anything good that those people have written about Brazil. It means that they do not make use of their reason hence make use of any common sense when they talk about Brazil or Brazilians. Their analyses are most frequently contaminated by their obsession to destroy Brazilian image. That makes their comments invalid and therefore irrelevant. I AM SORRY BUT THE NEWS BELLOW WILL LEAVE YOU EVEN MORE ANGRY!

    The revised figure of Brazil’s 2006 GDP will be released on March 28, which will overcome France in the World Bank ranking.
    Brazil ranks eighth largest economy globally: study

    Brazil is the eighth largest economy in the world, the Ministry of Finance said in a study based on the revised figures of Brazil’s 2000-2005 Gross Domestic Product (GDP).
    The revision, carried out by the Brazilian Institute of Geography and Statistics (IBGE), showed a rise of 10.9 percent from the previous figures, which brings Brazil’s GDP closer to France’s on the World Bank list.
    Brazil’s GDP reached 1.80 trillion U.S. dollars in 2005, according to the study, which was based on new figures released on Wednesday, and on a technique that considered the population’s purchasing power parity (PPP) as reference.
    The technique, used by the World Bank to rank countries according to their GDPs, takes into consideration other factors rather than exchange rates, habits, prices and demands.
    According to World Bank statistics, which has not been revised, Brazil’s GDP was the ninth highest in the world estimated at 1.62 trillion U.S. dollars, following Italy, whose GDP amounts to 1.66 trillion U.S. dollars.
    The revised figure of Brazil’s 2006 GDP will be released on March 28, which will overcome France in the World Bank ranking.
    Source: Xinhua
    http://english.people.com.cn/200703/23/eng20070323_360376.html

  • ch.c.

    yeahhhhhhh Great ! But so what ?
    On a per capita basis you are well below the countries you compare with !!!!
    You see China, despite their much higher growth rate are even poorer than Brazil , for the time being, but they are filling the gap since they grow at 3 to times your growth rate.

    And Brazil is NOT filling the gap with wealthier countries, since YOU DO NOT GROW AT A HIGHER RATE THAN THEM !!!!

    Simple basic maths !!!!

    Finally I take with suspicion the article where it says :” However the methodological reform has had to live with a certain degree of suspicion since growth rates from 2003 to 2005, the first three years of the Lula da Silva administration, were considerably significant and not so much those between 2000 and 2002, the last three years of former president Fernando Henrique Cardoso (1995/2002). “

    Because in 2003 Brazil grew by 0,5 %, in 2004 by 5 % and in 2005 by 2,3 %
    Average of the first 3 years : 2,6 %

    Is this significantly above the preceding years ????? LAUGH…..!
    May be so….but there has been a worldwide recession too.

    Anyway you look at it, using a time frame of 3, 5, 10, 20 or 30 years, Brazil average trend growth rate is near 2,5 % !!!!!!!!

    And if you believe that you are filling the gap with wealthier countries, your growth rate is simply not in harmony with such statement.

    Reality thus being that ALL developing countries are filling the gap (or increasing it if wealthier) against Brazil.

    Meaning that if not already done they will be wealthier than you in 1 ir 2 decades.

    On the other hand Brazil as said will not fill the gap with wealthier countries.

    SIMPLE CONCLUSION : basic maths clearly show that over time Brazi…..WILL lower its world ranking on a GDP per capita !!!!!
    And no one can say the opposite….SO FAR !
    And those who invented the name of BRIC have done en error in their long term estimates for Brazil.
    It could remain as BRIC due to the population, but it was already the case before they invented the name of BRIC anyway.
    BUT NOT ON A PER CAPITA BASIS !!!!
    THEREFORE BRAZIL SHOULD BE FIRED AND THE NEW NAME CHANGED TO…..RIC….IF ON A PER CAPITA BASIS COMPARISONS….. AND BRIC IF ON A COUNTRY BASIS COMPARISONS.

    JUST THINK ABOUT IT : it also means that over time despite you are already one of the world worst in the wealth inequality…..NOTHING WILL EVER CHANGE, WORSE YET…..IT WILL GET WORSE !!!!!!!!

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